PLASTIC OMNIUM (EPA:POM) - First-Quarter 2021 revenue

Transparency directive : regulatory news

20/04/2021 07:00

Levallois, April 20, 2021

Solid business levels in the first quarter of 2021

* Economic revenue* up 4.8%
* Outperformance of 4 points in Europe and 22 points in Asia excluding China;
  strong growth in China (+79%)
* 2021 guidance confirmed**

Revenue up 4.8% in the first quarter of 2021

Plastic Omnium generated economic revenue of EUR2,157 million in the first
quarter, up 4.8% at constant exchange rates. Growth was driven by Plastic
Omnium Modules, where revenue rose 12.5% at constant exchange rates.

Revenue from joint ventures (mainly businesses related to the production of
exterior parts in China (YFPO) and the assembly of modules in South Korea
(SHB)) rose 65.4% at constant exchange rates in the first quarter of the
year.

Plastic Omnium's consolidated revenue, excluding joint ventures, amounted to
EUR1,985 million in the first quarter of 2021, up 1.5% at constant exchange
rates compared with the first quarter of 2020.

In EUR millions           First quarter  First quarter            Change at
by business line                2020         2021       Change     constant
                                                                exchange rates*
Plastic Omnium Industries       1,598       1,567       -1.9%
+2.1%
Plastic Omnium Modules            539         590       +9.5%       +12.5%
Economic revenue                2,137       2,157       +1.0%        +4.8%
Joint ventures                    108         172      +59.9%       +65.4%
Plastic Omnium Industries       1,525       1,445       -5.3%        -1.4%
Plastic Omnium Modules            504         541       +7.3%       +10.3%
Consolidated revenue            2,029       1,985       -2.2%        +1.5%

* At constant exchange rates. In the first quarter of 2021, currency effects
had a EUR78 million negative impact on economic revenue and a EUR74 million
negative impact on consolidated revenue.
** Based on Plastic Omnium's assumptions concerning worldwide automotive
production in 2021, i.e. 77 million vehicles.

Financial information / Tel.: +33 (0)1 40 87 66 78 /
Fax: +33 (0)1 40 87 96 62 / investor.relations@plasticomnium.com

Plastic Omnium is the world leader in intelligent exterior systems, clean
energy systems and automotive modules. The Group and its joint ventures employ
more than 31,000 people in 135 plants, 25 R&D centers and 25 countries
worldwide, and serve 93 automotive brands. Plastic Omnium is listed on
Euronext Paris, compartment A. It is eligible for the Deferred Settlement
Service (SRD) and is part of the SBF 120 and CAC Mid

Outperformance of 4 points in Europe and 22 points in Asia excluding China;
strong growth in China (+79%)

In the 1st quarter of 2021, automotive production posted growth of 13.6% mainly
driven by China (+79.2%) which benefited from a very favorable basis of
comparison having been the first country affected by Covid-19 in 1st quarter
2020. Worldwide automotive production excluding China, where the Group
generates 90% of its economic revenue, is stable (-0.4%).

The Group outperformed in Europe (+4.0 points), and in Asia excluding China
(+21.9 points). In China, business growth is very strong (+79.2%) and
outperformance will accelerate over the coming quarters. In North America,
revenue was held back by a fall in tooling invoicing, which will be made up in
the second quarter.

In EUR millions and as
a % of revenue      First quarter  First quarter         Change at   Automotive
By region                   2020        2021    Change    constant   production
                                                          exchange      (4)
                                                           rates(3)

Europe                      1,186      1,214       +2.4%       +2.9%      -1.1%
North America                 659        528      -19.9%      -12.4%      -5.4%
China                         118        209      +76.5%      +79.2%     +79.2%
Asia excluding China          126        150      +19.2%      +25.0%      +3.1%
South America                  24         24       +0.8%      +41.0%      +5.3%
Africa                         24         32      +34.3%      +39.3%      -1.3%
Economic revenue(1)         2,137      2,157       +1.0%       +4.8%     +13.6%
Joint ventures                108        172      +59.9%      +65.4%
Consolidated revenue(2)     2,029      1,985       -2.2%       +1.5%     +13.6%

Given that the Covid-19 pandemic first affected Asia in early 2020, then Europe
and North America from March 2020, year-on-year changes in automotive
production varied widely between regions in the first quarter of 2021:

- In Europe, with a revenue of EUR1,214 million in the first quarter, up 2.9%
at constant exchange rates, Plastic Omnium outperformed by 4.0 points. This
outperformance is mainly due to its successful positioning on new electric
vehicle programs (Porsche Taycan, Volkswagen ID3/ID4 and Audi e-tron) and the
extension of its modules offering, which increases its content per vehicle.

- In North America, Plastic Omnium' activity, adjusted for tooling invoicing
related to launches in the first quarter of 2020 (Volkswagen and BMW), is in
line with the evolution of the automotive production. These invoices will be
made up in the second quarter thanks to launches for Lucid Air and General
Motors in Mexico.

- In China, Plastic Omnium's revenue amounted to EUR209 million, representing
an increase of 79.2% at constant exchange rates. Over the year as a whole and
from the second quarter, the outperformance will continue to be driven by
market share gains for Plastic Omnium Industries and the ramp-up of the Group's
modules business in China, with three new sites: two electric platforms
launched for Tesla and Volkswagen and one platform for Daimler.

- In Asia excluding China, Plastic Omnium's revenue totaled EUR150 million, up
25.0% at constant exchange rates. That represented a 21.9-point outperformance,
driven by strong business levels for Hyundai in South Korea and Proton in
Malaysia.

Increased flexibility and cost reduction efforts Continuation of the
transformation program

Since the start of 2021, Plastic Omnium has been managing its operations on a
5% discount to expected worldwide automotive production volumes, i.e. 77
million vehicles. Flexibility measures have been stepped up to absorb the
consequences of production line stoppages and the reduction in production
volumes by many carmakers as a result of supply shortages, particularly
relating to semiconductors. This is indirectly affecting Plastic Omnium, which
is managing the industrial and logistical situation on a daily basis across its
135 plants.

The Group has also closed its fuel systems production site in Eisenach
(Germany) as planned, contributing to the EUR20 million of
reorganization-related savings expected in 2021. These reorganization measures
will continue.

Additionally, the Omega transformation plan aims to improve the Group's
agility, organizational operation and industrial efficiency by simplifying
processes, accelerating digitization, and facilitating a more cross-functional
approach. The plan is being implemented in two areas initially, i.e. indirect
purchasing and design and development costs. To date, 1,800 initiatives have
been defined and are being either assessed or implemented.
As previously announced, they will result in EUR200 million of cost savings by
the end of 2022, including EUR100 million by the end of 2021. The Group is also
launching a plan to transform and improve its support functions.

Numerous strategic commercial successes in the first quarter of 2021

Order intake in the first quarter of 2021 enhanced the Group's growth
potential, particularly due to:

- the Group's strong global positions in electric vehicles:

o Germany: front and rear bumpers for Ford's new electric SUV; cockpit modules
for Volkswagen's ID-buzz electric camper van;
o United States: front-end modules for a 100% electric carmaker;
o Mexico: front and rear bumpers for General Motors' new electric SUV and the
Volkswagen Jetta;
o China: active grille shutters for Audi's Q4 e-tron electric vehicle;
- market share gains arising from carmakers replacing metal parts with plastic
parts:
o Fuel systems for Mitsubishi's Triton - one of the most popular SUVs in
Southeast Asia
- which will be produced in Thailand: Plastic Omnium is now Mitsubishi's
preferred partner for future developments, in which current metal fuel systems
will be replaced with plastic tanks.

Hydrogen mobility: launch of the EKPO Fuel Cell Technologies joint venture

On March 1, 2021, Plastic Omnium and ElringKlinger launched their EKPO Fuel
Cell Technologies joint venture, a leading player in fuel cells for a wide
range of applications including commercial vehicles, buses, passenger cars,
trains and boats. Plastic Omnium has also acquired ElringKlinger Fuelcell
Systems Austria GmbH (EKAT), which is ElringKlinger's Austrian subsidiary
specializing in integrated hydrogen systems.

In line with its strategy, therefore, Plastic Omnium now has a comprehensive
offering including storage, fuel cells and integrated hydrogen systems.
Combined with its available industrial capacity, this means that it can respond
to the increasing number of call for tender in the hydrogen mobility segment,
as well as confirming its ambition of generating EUR3 billion of revenue in
2030.

Progress in sustainability

Plastic Omnium has continued to prepare its carbon-neutral roadmap, details of
which will be provided in the second half of 2021. In the first quarter, it
signed agreements with two external partners specializing in energy transition,
and together with them has already committed to:

- auditing all Group's facilities in order to identify ways of increasing
energy efficiency and the investments required to implement them (scopes 1 and
2);
- analyzing the potential to shift the Group's energy sourcing towards
renewable energies and devising the related action plan (scopes 1 and 2);
- putting together an action plan to reduce the carbon footprint of its
suppliers and transportation providers (upstream scope 3);
- quantifying and increasing the positive impact of the Group's innovative
products for end- customers and end-users (downstream scope 3).

At the same time, Plastic Omnium is stepping up its plan to generate renewable
energy at its facilities. After installing renewable energy equipment at four
sites in 2020, the Group has agreed so far from beginning of 2021 to equip a
further 10 sites.

2021 outlook

Automotive production remains highly volatile and is varying increasingly
between regions. Semiconductors and raw materials supply chains are still under
pressure in all geographical zones, and the recovery is being slowed by the
economic and Covid-19 situation, particularly in Europe.

Based on Plastic Omnium's assumptions concerning worldwide automotive
production in 2021, i.e. 77 million vehicles, and as a result of its
flexibility and cost-reduction plans, the Group is confirming the following
guidance for 2021:

- A strong rebound in revenue
- Operating margin of 6%, similar to the level seen in 2019
- Free cash flow of more than EUR220 million, higher than the 2019 figure

Results for the first half of 2021, scheduled for publication on July 21, 2021,
will reflect that trajectory.

Conference call

A conference call will take place today at 8am (Paris time). During the call,
Adeline Mickeler, EVP Corporate Finance of Compagnie Plastic Omnium SE, will
review the main developments in the first quarter of 2021.

The conference call will take place in English.

If you would like to access the conference call, please call one of the
following numbers:

France               Tel: +33 1 72 72 74 03
Germany              Tel: +49 69 22 22 25 429
Spain                Tel: +34 911 140 101
United Kingdom       Tel: +44 207 194 3759
United States        Tel: +1 646 722 4916
PIN: 23669625#

Calendar

April 22, 2021    General Meeting of Shareholders

April 28, 2021    Ex-dividend date (dividend of EUR0.49 per share) May 3, 2021

                  Dividend payment date

July 21, 2021     Publication of first-half 2021 results

October 21, 2021  Publication of quarterly information for the third quarter of
2021

Glossary
1. Economic revenue reflects the Group's operational and managerial reality. It
corresponds to consolidated revenue plus the Group's share of revenue from
joint ventures based on ownership percentage: BPO (50%) and YFPO (50%) for
Plastic Omnium Industries and SHB Automotive Modules (33%) for Plastic Omnium
Modules.
The breakdown of revenue by geographical zone is based on the countries in
which Plastic Omnium subsidiaries generate their sales. Until 2020, the
breakdown was based on the countries in which their clients were established.
The change is intended to simplify the process of producing information, and
does not have any material impact.
2. Consolidated revenue does not include the Group's share of revenue from
joint ventures, which are consolidated using the equity method in accordance
with IFRS 10, 11 and 12.
3. Like-for-like: at constant scope and exchange rates.
a. The currency effect is calculated by applying the period's average exchange
rate to prior-year revenue. In the first quarter of 2021, currency effects had
a EUR78 million negative impact on economic revenue and a EUR74 million
negative impact on consolidated revenue.
b. Scope effect is non-significant in the first quarter of 2021.
4. Source: IHS, April 2021

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16/04/2024 18:00

PLASTIC OMNIUM (EPA:POM) - First-Quarter 2021 revenue

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